Source of RMD due to Rollover
A client had a 457 plan as of 12/31/17 as well as a rollover IRA. This is the first year that an RMD is required, and we are in the process of rolling over the 457 plan to the IRA. Can we consolidate the RMD to only take funds from the IRA, or would we need to take an RMD from the 457 plan in addition to the RMD from the IRA before we roll it over?
Permalink Submitted by Alan - IRA critic on Fri, 2018-06-22 19:15
The 2018 RMD (as well as 2017 RMD if client reached 70.5 in 2017) must be distributed prior to the IRA rollover. The 457 RMD and the IRA RMD must be separately distributed from each plan, and are not combinable.